The State Bank of Pakistan has officially lifted its seven-year ban on providing services to cryptocurrency companies, allowing banks to offer their services to licensed crypto providers. However, financial institutions are still barred from using their own funds or customer deposits to invest in, trade, or hold digital assets.
This move follows the recent passage of the Virtual Assets Act of 2026, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector. Under the new regulations, banks can open accounts for licensed virtual asset service providers and those seeking approval, provided they adhere to strict anti-money laundering and know-your-customer regulations. The central bank has outlined detailed conditions for onboarding crypto firms, including license verification, enhanced due diligence, and ongoing transaction monitoring. This development comes after the Pakistani government signed an agreement with Binance to explore tokenizing bonds and commodity reserves, and announced plans to accelerate crypto adoption and launch a national stablecoin.
Approximately 40 million people in Pakistan, or around 17% of the population, are involved in cryptocurrency trading, making the country one of the largest crypto markets by retail activity.